Exploring the Growth Potential of NYSE:LRN as It Nears a Breakout.

Last update: Nov 18, 2024

In this article we will dive into STRIDE INC (NYSE:LRN) as a possible candidate for growth investing. Investors should always do their own research, but we noticed STRIDE INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Understanding NYSE:LRN's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:LRN scores a 8 out of 10:

LRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 52.35%, which is quite impressive.
The Earnings Per Share has been growing by 39.31% on average over the past years. This is a very strong growth
Looking at the last year, LRN shows a quite strong growth in Revenue. The Revenue has grown by 11.55% in the last year.
Measured over the past years, LRN shows a quite strong growth in Revenue. The Revenue has been growing by 14.97% on average per year.
Based on estimates for the next years, LRN will show a very strong growth in Earnings Per Share. The EPS will grow by 20.38% on average per year.
Based on estimates for the next years, LRN will show a quite strong growth in Revenue. The Revenue will grow by 10.57% on average per year.

How do we evaluate the Health for NYSE:LRN?

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:LRN, the assigned 7 reflects its health status:

LRN has an Altman-Z score of 6.10. This indicates that LRN is financially healthy and has little risk of bankruptcy at the moment.
LRN's Altman-Z score of 6.10 is amongst the best of the industry. LRN outperforms 84.38% of its industry peers.
The Debt to FCF ratio of LRN is 2.38, which is a good value as it means it would take LRN, 2.38 years of fcf income to pay off all of its debts.
LRN's Debt to FCF ratio of 2.38 is fine compared to the rest of the industry. LRN outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that LRN is not too dependend on debt financing.
LRN has a Current Ratio of 5.60. This indicates that LRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of LRN (5.60) is better than 93.75% of its industry peers.
A Quick Ratio of 5.50 indicates that LRN has no problem at all paying its short term obligations.
LRN has a better Quick ratio (5.50) than 93.75% of its industry peers.

Profitability Assessment of NYSE:LRN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:LRN was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 12.18%, LRN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
With an excellent Return On Equity value of 19.78%, LRN belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
LRN has a Return On Invested Capital of 12.62%. This is amongst the best in the industry. LRN outperforms 87.50% of its industry peers.
The 3 year average ROIC (9.47%) for LRN is below the current ROIC(12.62%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 11.38%, LRN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
In the last couple of years the Profit Margin of LRN has grown nicely.
With a decent Operating Margin value of 13.91%, LRN is doing good in the industry, outperforming 75.00% of the companies in the same industry.
LRN's Operating Margin has improved in the last couple of years.
In the last couple of years the Gross Margin of LRN has grown nicely.

How does the Setup look for NYSE:LRN

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:LRN this score is currently 7:

LRN has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 100.32, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Our latest full fundamental report of LRN contains the most current fundamental analsysis.

Our latest full technical report of LRN contains the most current technical analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.